1996-97 health expenditure figures (AIHW)

Figures released today by the Australian Institute of Health and Welfare show that spending on health services as a proportion of Gross Domestic Product (GDP) has remained virtually unchanged over the last six years. The health to GDP ratio was 8.5% in 1996-97 (Table 3).

Australia spent $43.2 billion on health in 1996-97, up in real terms by 2.9% from the 1995-96 level. This was lower than the real growth of 4.2% in 1994-95 and 5.2% in 1995-96 (Table 1).

Average spending on health services per person in Australia was $2,345 in 1996-97, an increase of $74 over the 1995-96 level, or 1.7% in real terms (Table 2). This was less than the average annual real growth rate of 2.8% for the period 1992-93 to 1996-97.

Of the $43.2 billion spent on health services in 1996-97, the Commonwealth Government funded 45.5%, State and local governments funded 23.2% and the non-government sector paid for the remaining 31.3% (Table 4).

The non-government sector share of total health funding increased slightly from 1988-89 to 1994-95, but in the last two years has fallen from 32.8% to 31.3%, to be at the same level it was in 1988-89. The non-government share dropped because of an apparent fall in the expenditure share funded by out-of-pocket payments and due to a fall in capital expenditure by this sector. The proportion of total health services expenditure funded by private health insurance funds was 10.9% in 1996-97, the same as in 1994-95.

From 1992-93 to 1996-97, Commonwealth funding grew, in real terms, by an average of 5.0% per annum; State and local government funding grew by an average 3.6% per annum (Table 5).

Commonwealth funding of health services grew by 2.8% between 1995-96 and 1996-97. This was significantly lower than the average annual growth of 5.8% in the previous three years, and was mostly due to lower growth in medical services expenditure. After an average real growth of 5.4% per year from 1992-93 to 1995-96, overall medical services expenditure increased by 0.4% in real terms in 1996-97. Commonwealth funding of medical services fell by 0.3% in real terms in 1996-97.

The major areas of expenditure in health are recognised public hospitals (which received funding of $11.2 billion in 1995-96), followed by medical services ($7.9 billion in 1995-96), pharmaceuticals ($4.7 billion), private hospitals ($3.2 billion) and nursing homes ($3.0 billion) (Table 7).

1996-97 health expenditure figures

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